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Recent hurricanes could test the growing catastrophe bond market

Oct 24, 2024
Cat bonds help insurers spread risk to investors. Extreme weather created by climate change may disrupt the balance of risk and reward.
Waves crashed along the Florida coast as Hurricane Milton approached on Oct. 9. Catastrophe bond investors play in a risky market.
Bryan R. Smith/AFP via Getty Images

Why the CAT bond market is booming right now

Mar 13, 2024
They're called CAT — for catastrophe — bonds, and insurers and investors can't get enough of them.
If disaster does strike, CAT bond investors could potentially lose the principal, interest or both. Above, destroyed homes and storm debris in Florida after Hurricane Ian in 2022.
Giorgio Viera/AFP via Getty Images

CAT bonds could be key to paying for wildfire losses

Dec 10, 2018
Some urge FEMA to issue a catastrophe bond to help pay for wildfire recovery.
Firefighters battle flames at a burning apartment complex in Paradise, north of Sacramento, California, on Nov. 09.
JOSH EDELSON/AFP/Getty Images